RISE IN GOLD

Nelson Evening Mail, Volume LXVI, 16 June 1932, Page 7

RISE IN GOLD

DEVALUATION OF HUMAN EFFORTS “A MONSTROUS PROCESS” COMMENTS BY MR CHURCHILL (United Press Association—By Eleetrio Telegraph—Copy rigli t) (Received 16th June, 11.25 a.m.) LONDON, 15th June. “Through the rise in the price of gold, debtors everywhere are required to pay 70 per cent, more than a few years a'go,” declared Mr Winston Churchill. “If the monstrous process continues it will shat, ter civilisation, as it- has already shattered prosperity. War debts have caused disease, but the cancellation of reparations will not- cure it. We must check the progressive devaluation of human effort in terms of gold. Therefore 1 am glad that the Government favours a world monetary conference. Those fearing it ought- to remember the stern fight the Australians and New Zealanders are making to preserve their solvency and honour. Governments may enforce sacrifices in all classes, but a fresh rise in the value of gold would wipe out all they have done. The only solution is an international agreement to * Devaluate commodities and provide a stable measure for the exchange of services and goods.” (British Official Wireless) RUGBY, 15th June. In a speech at a city luncheon to-day, Mr Winston Churchill welcomed the Government support for the proposal to summon a world conference on the money problem in order to arrest what he described as remorseless deflation. The tasks before a world conference were to discover the best practical method by which the devaluation of commodities Could be substantially arrested, and invest the process with that- authority whicli would command and hold the confidence of the most powerful States, and also the investing classes in every land. Referring to the enhancement in the price of gold, he said that everything else had also fallen in a like degree. A remarkable feature had been the.way hi which the prices of all these thousands of commodities kept steady in relation with one another. They marched forward together in orderly array. One commodity alone, gold, had broken from the ranks, and since it was at present our supreme measure, all the rest had been cast down.